Quipt Home Medical Completes Strategic Acquisition of Hart Medical Adding $60 Million in Revenue
CINCINNATI, Sept. 03, 2025 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. ("Quipt" or the "Company") (NASDAQ:QIPT, TSX:QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, today announced the closing of its previously announced joint venture transaction with three major health systems and two hospitals to acquire Hart Medical Equipment ("Hart"). Quipt has acquired a 60% ownership interest in Hart, with the remaining 40% interest collectively held by Henry Ford Health, McLaren Health Care, Blanchard Valley Health System, Wood County Hospital, and The Bellevue Hospital.
Transaction Highlights:
- Quipt has acquired a 60% ownership interest in Hart for total consideration of $17.4 million which was funded by senior credit facilities.
- Hart generated approximately $60 million in annual revenue and $7 million in Adjusted EBITDA for the twelve months ended June 2025 and expects to generate $10+ million in annual Adjusted EBITDA over the next 6-9 months.
- Management anticipates Hart's Adjusted EBITDA margins will align with Quipt's historical corporate averages over the next 6-9 months.
- For reporting purposes, Quipt expects to consolidate the financial results of Hart. Accordingly, Quipt's expected annualized run-rate revenue is now in excess of $300 million. Upon successful integration of Hart over the next 6-9 months, Quipt's Adjusted EBITDA is anticipated to be in excess of $65 million. As the primary beneficiary of the joint venture it is expected that the 40% non-controlling equity interest will be reported as a separate component on the Company's Consolidated Statements of Financial Position.
- Hart maintains longstanding strategic relationships with leading integrated health systems, including Henry Ford Health, McLaren Health Care and Blanchard Valley Health, as well as freestanding community-based hospitals, embedding the business into the hospital discharge processes of more than 19 hospitals and affiliated care facilities across its network.
- Hart serves more than 67,000 patients monthly, providing a stable and recurring revenue stream.
Management Commentary:
"We are excited to officially close this milestone transaction with three major health systems and welcome Hart to the Quipt family," said Greg Crawford, CEO and Chairman of Quipt. "Hart's strong health system relationships and regional market leadership represent a powerful strategic fit. This acquisition demonstrates the scalability of our acquisition platform, while providing us with a major entry into Michigan and expanded reach across the Midwest. Looking ahead, we see a deep pipeline of additional opportunities that can be integrated onto our platform to further accelerate growth. With a stabilized revenue base, consistent Adjusted EBITDA performance, and building momentum within the business, we are confident in our ability to close the calendar year on a high note and carry strong momentum into 2026."
"The successful closing of Hart underscores our disciplined approach to acquisitions and highlights the strength of our healthcare system-focused growth strategy," said Hardik Mehta, CFO of Quipt. "We funded this transaction with our existing credit facility, while maintaining a conservative leverage ratio. Importantly, we will look to increase the size of our senior credit facilities, which would provide us with additional flexibility to execute on our robust pipeline, while maintaining a modest long-term leverage profile consistent with our historical financial discipline. We are excited about the opportunities ahead and are well-positioned to generate consistent organic growth, while continuing to strengthen our platform through disciplined execution."
Hart Medical current executive, Allen Hunt, stated, "As a DME provider deeply embedded in the needs of health systems, we continue to see extraordinary, untapped potential in our space. The recent wave of consolidation across key markets has made one thing clear: to remain relevant and accelerate growth in today's dynamic healthcare environment, additional scale is no longer optional, even for organizations like ours generating over $60 million annually. Recognizing this, we embarked on a rigorous search for a partner who could not only deliver the operational and technological scale we needed, but also share our commitment to serving the specialized needs of health system partners. In Quipt, we found that partner. Quipt brings more than just scale. Their patient-centered leadership, innovative mindset, and cultural alignment with our own make them an ideal match. Together, we are now positioned to seize the significant growth opportunities emerging throughout our service area."
The Braff Group served as exclusive financial advisor for Hart.
ABOUT QUIPT HOME MEDICAL
The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company's organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services, and making life easier for the patient.
Reader Advisories
Readers are cautioned that the financial information regarding the Hart disclosed herein is unaudited and derived as a result of the Company's due diligence, including a review of Hart's bank statements and tax returns.
Unless otherwise specified, all dollar amounts in this press release are expressed in U.S. dollars.
Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or "forward-looking information" as such term is defined in applicable Canadian securities legislation (collectively, "forward-looking statements"). The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook", or the negatives thereof or variations of such words, and similar expressions as they relate to the Company are intended to identify forward-looking statements, including: post integration financial results (revenue and Adjusted EBITDA) of Hart; management's expectations for Quipt's post-closing annualized run rate; management's expectations for post-closing Adjusted EBITDA for the joint venture and the timing of such results; the Company anticipating strong margin performance throughout the year and into 2026; the Company's expectations and timing of growth; the Company's expectations regarding the impact of the acquisition of the joint venture; opportunities to increase long-term shareholder value. All statements other than statements of historical fact, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including, without limitation: the Company successfully identifying, negotiating and completing additional acquisitions; operating and other financial metrics maintaining their current trajectories, the Company not being impacted by any further external and unique events like the Medicare 75/25 rate cut and the Change Healthcare cybersecurity incident for the remainder of 2025; and the Company not being subject to a material change to it cost structure. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: risks related to credit, market (including equity, commodity, foreign exchange and interest rate), liquidity, operational (including technology and infrastructure), reputational, insurance, strategic, regulatory, legal, environmental, and capital adequacy; the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers; granting of permits and licenses in a highly regulated business; legal proceedings and litigation, including as it relates to the civil investigative demand ("CID") received from the Department of Justice; increased competition; changes in foreign currency rates; the imposition of trade restrictions such as tariffs and retaliatory counter measures; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the Company's status as an emerging growth company and a smaller reporting company; the occurrence of natural and unnatural catastrophic events or health epidemics or concerns; as well as those risk factors discussed or referred to in the Company's disclosure documents filed with United States Securities and Exchange Commission and available at www.sec.gov, including the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, and with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking statement prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.
Non-GAAP Financial Measures
This press release refers to "Adjusted EBITDA" which is a non-GAAP financial measures that does not have standardized meaning prescribed by generally accepted accounting principles in the United States. The Company's presentation of this financial measure may not be comparable to similarly titled measures used by other companies. This financial measure is intended to provide additional information to investors concerning the Company's performance.
Adjusted EBITDA is calculated as net loss, and adding back depreciation and amortization, right-of-use operating lease amortization and interest, interest expense, net, provision for income taxes, certain professional fees, including those related to the CID, the loss of private issuer status, and proxy contests and other actions of activist shareholders, stock-based compensation, acquisition-related costs, change in fair value of derivative liability – interest rate swaps, loss (gain) on foreign currency transactions, and share of loss in equity method investment.
For further information please visit our website at www.quipthomemedical.com, or contact:
Cole Stevens
VP of Corporate Development
Quipt Home Medical Corp.
859-300-6455
[email protected]
Gregory Crawford
Chief Executive Officer
Quipt Home Medical Corp.
859-300-6455
[email protected]
